ABSTRACT
In this chapter we discuss the role of small free-standing subcontractors in such a production system, in terms of production and the creation of a new supplier park, using the case of the Goteborg final assembly plant of the Volvo Car Corporation and its domestic suppliers. The impact of putting pressure on first tier suppliers to locate close to the final assembly plant is first discussed in theoretical terms of forces of concentration and dispersion operating on different tiers of the production hierarchy. From this, five main issues concerning supply chains, subcontractors and supplier parks will be discussed:
• The role of small and medium sized branch plants and independent SMEs in the ongoing restructuring process within the automotive industry. What are the prospects for competition with larger firms for first tier contracts?
